SR-6-I (9)
r# I e Santa Bonica, calif.nia, JU!1e l5, 1979
=-0: Mayor and Ci""cy Cour..cil Z. t?$"-tf)()/ ~ L
FRmI: Ci"':.y Staff .J..U~ 2 to ~":!!:
SU3JECT: Evaluation of ~ax~caj F '" r'~::' t s
Introdu::tion
This report is a review of the sys~e~ :cr t ." . t
s. x =- C~ a J p 8 rc:'_l _ S
instituted lasL. :lear ar~d of the C "-lrren -l: Vur..i c ipal Code governing
taxicab ?ermits.
Background
In :,':arch, 1978, Santa ?~or.:.ica was faced vIi th the loss o ~ ::1ine-':.y per-
ce~t of its -:.axi se!"vice (to the City) Que to t~e :'inancia1 difficulty
of Santa I.~o::dca. Cab COI:lpany. At tha-;o -:'lY:1e, Santa Honica Cab C {)ID;> an~r
v-.t"2,. s one :)f t..., 0 compa!1ies ''.lhich held a:::l exclusive franc.c.::..se . ~ .
lD .::;a:r:."':.a
"! r . ar:d 1~ia8 the only cab company based ~ithin the ,..,. .
"',"0 n 1 c a , 'vl=vy.
When the City ~as notified t~a~ San"a Honica Csb Co:r:.pa.ny had. to sus-
pend cab service, City s"taff investiga~ed a~~er~atives which would
prevent " . in taxicab ser"p'lice to the citlzens of Santa Honica.
a oreal<::
Ju.rlng this same period, t11e City Council ac.cpted, -::):!1 a te~porary
h . 9 5YB~e7 ~hich 2l1c~ed 8~,~';'S~ .0ab t8 C:::2r:3.~e i'l
vaSls, .2.0~-::::2.:ll2 s
t.te i~ --!' -:. '.:-
"-"" - ~. -' .
Subsequentl;y, several. cat companies ~Ede app~ication for te.xi permi~s.
At tne request of City staff, -I-nCl apppli.::;ant companies also ::-rovided
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such i:lf8r~atio~ 0::1 the l1ames of stock~clders, pertinent financial
s-:at;eme!lts, liat of eQuipTIent and operating vehicles, and. a list of
~ L
JUN 2 6 1979
!!Jfayor ar:.d City Co une. . June 15, 1979
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areas where they are currently opera~ing, as well as the proposed.
hours and days of operation in the Ci ty.
All the applicants were able to provide twenty-four hour a day service,
seven days a week d . , , . to co::-.ply vii th the Ci-':,y's in-
an v;,ere v,l..:..-'.lng
surance require~ents. The applicant cO~DaIlies VIere also ',villing to
accept the City's designated taxi stand loeaticns.
As required ~y the ~u~icipal Code, the City Council held a public
hearing to deter:!:'ine tl:e public convenience and. neces8it~1 for grantlng
taxic2.o :;Jermits to the applicant c0mpanies. IT:; all, seven ne~ compa~ies
had applied P . ". to operate in Santa 2'(0:0ioa, and by the -:'l!1e
-,-or yerrrl~S
the pu"":Jlic hearing was held on June 27, the Sar:.ta Eonica Cab CO!Ilpany
haC. declared i-:.self financially able -:'0 service -':.he citizens of Santa
Eoniea.
A~ the public hearing, it '.vas determined that the temporary r' open
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]T:ar ke t 'I system ~hich ~ad been in opere.tion fro:":! J.,~areh to ,june, had
worked ,,,ell. :'he City Council subsequently determined that
syste= sh8Jld ~e ~es~e.j fl1.::-::her fc-r a :;eri'J8. :: f -::>~_-l e ~Tea!' ~
ending .June 3'" 1979. The staff was directed to evaluate t:!J.e
~,
5:r s~, e::-- .end . }' the Ci t}-;" CC-<.l::eil ~ ~ :)r:e year,
repoY'-=: GEe;: T.C .....i... _-'-
reco~~er-ding procedural 9.TIendITlents c.O t:te Taxi Permit sections of
the Santa ~.~o!lica Hllnicipal Code ~"vhere appropriate.
Mayor a::ld. City coun. . June 15, 1979
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EvaLlatlon
Before the 110?2n ='&r}~etTfsys-;;em Y;,as utilized in Santa Monica, the
Ci ~'.JT Co ?..lnci 1 was advlsej r">"':T -::.he ~v:o companies holding exclusive
.....ti.
franc~ises tha;; suc~ a syst e!:'. Vi'ould rlot n .co'""- the ci-:izens of
o.)ene.il:..
Santa Monica. It Vias +':' n"; opi::.ioL that ot1:er cab companies, n.o"t
,,~~~r
based in Sarlta Horriea and serving larger areas, ,:muld not provide
adequate service to ~he people of Santa ='.'~onica.
'Ihe Ci t;y- Cou!lcil also heard testimo:2Y fro~ -':.he other companies
'.'dshing to serve this area that Santa :":onica '."muld ce~efi-::. :~o:r..
an i:2creased nu~ber of operating cabs. "!'be advan~a5e of the TfopSTI
'Da:cket Ir systeT:l ...,ou::"d. be ~o allow t~'le citizery a vdder selection of
cab services, an~ such competiticn would helD to improve services.
Throughout t~e year, staff has monitoried cOF.:plaints regarding -::axi-
cab services. :'0 da-:.e, o::lly tUfO complaints nave bee:!l received by
the Ci~y Manager's Cffiee regard.irlg taxicabs. The .~ o~panJ'~ involved
v;a -s ncti:'ieQ and sough-: to correct the DrQb~em.
S~.aff also corlQu:3ted a rar::lom s~..lrve:{ of !:lospit2.ls, convalescent
t.o:nes, an.d hotels to check the adequacy of taxicab servi ces and
of response ti=.e. FrOG t:te information received, -:axicab service
in the Ci t~r ':\;~ias ra-:.ed froTIl ad.eq~.la te to very good, TNi th a cae respo~se
"Gi:ne of -i.lsu_a~l~{ 10 to 15 T;.i::lutes. ~{ 0 ot~er :;;rocle~s Vll ~ ~ cab service
"Co'lere reported.
. ""Mayor and Ci ty coun. e June 15, 1979
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Revie'll of Current Municipal Code ,.., . Taxica~s
'Jovernlng
Juri'1g this one year test period, s-t3.ff also reviewed +' existing
v:1e
J.hmi c i Dal Code governing taxicab per:::its. UpO'1 reviem, it is evident
t ~'1 a ~ cer~ai'1 sections of the Gode s!1ould -:)e amended..
Currently, the J.bnicipal Cone requires that the cab companies
"Jrovide comp'J.lsory insurance coverage for each cab. The limits
s~ated in the Code are:
- $20,000 for tile injury :'0 a~'1;;. person or deat~ of anyone
perSO:1 in any one accident.
- $40,000 for t:he in.jury wo t VlC- or Dore perso~8 or the c.ea-:.h
of t V-jO or more persons i~ any O1'e accident.
- S 5, (}J8 for the injury or destruc~ion of property in an.T
one accid.en.t.
:?resently, a. ca~ co~paLY wiscing to ODerate in. San-:a hfo'1ica is
required -:0 provide tne f ~ 1 .
() 1.. OVll~.g COYl'leraE!e:
- $300,000 for bodily injury for each persor...
- 3500,000 for bodil:-r injury liability each occurrence.
- ~ 5.8, (JOG for propert~r damage liatility.
<,.-
=his discrepancy bet~een the Code ana carrent -c:ractice shou16 5e
corrected. A:so, due ~o the constant rise in insurance cost s, liIui 1.,8
should .Got be specified by t~e Code, ~~ut rather se-:, by rescl'J.ticn.
Mayor and Ci ty COU.l . June 15, 1979
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In ad.di t iO!l :'0 these changes regarding insurance coverage, and
given the e~ergency situation that occurred last year, it is
ad'ii8~-8~e to ~,odify the ordinance to enable the City Hanager to
grant temporary permits until t~ne Cou~cil has time to act.
Alternatives
1) Continue ~~e -c:."" e:::- 2r~ t . . -j~sed o::'~ L:.2 - , ~
5 :;"r S. -: e = :rJ~ -:1 ~ J ~l II ~a CA c:
complaints reported and the inforration received, has
operateci successfully ~or the Dast year. Existing taxica)
permits, oy ordinance, u;i Il be autoF.atically renewed for
one year.
2 ) Revert to the nrevious system of granting a limited
nurber of permi:.s to cab operators. This s~rstern is
subject to the financial capabilities of the particular
co:npan.le s, a::~d ma~r re suI t, as before, in an interruption
of service. If t~is alternative lS adopted., t~e Council
must set a public hearing for July 24, 1979 to determine
vlnich -saxicab co~pany(s) shall be per~itted to opera~e.
1-: must also act to extend. existing per~its until that
date.
Recommendation
T.L is recommended that the C 0 u~'l C i 1 adopt alternative #1 ;'lhi C!l
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continues the 3--.:E-:e~ a-5 it p:..-"lIe.3eJ:,-'--~r 2"Cers.-::.es. I~
~;Le.;lor and City couW1 . June 15J 1979
J' . <
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is furt~er reco~~ended that the City Att8r~ey be directed to
prepare arr-endments to the :"iunicipal Code as discussed in this
repart, for future City CO'J.nci~ action..
Prepared -'JY: JEANNE L. KEl'i:NE!JY
Administrative Assistant
ALICE ZUNIGA
Administrative In~er~
,;LK:AZ:dvl
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